There are lots of advantages of Forex Trading, but let's be fair that we all are here because of its one and most important advantage and it is the profits involved in it.
Top Advantages of Forex Trading
- Thread starter Sandy Christ
- Start date
Almost trader that joined on forex they having goal to making money from this business, but also many trader leaving business because facing with failure, might we often hear more than 90% trader fail and only few percent that able success
Most of the traders fail in Forex, but I think they fail because of the lack of knowledge or experience and skills that could help them to survive in Forex.
This is risky business actually, indeed experience is very important but however risk management and patience with high dedication is required if any trader want to survive here
Yes absolutely, forex is a risky business. But with proper risk management we can control the risk associated. Few risk management techniques are like deciding in advance how much to risk per trade, setting proper risk-reward ratio, using adequate stop loss and effective use of leverage.
Some trader might use risk reward ratio 1:1 or higher, if we put stop loss 20 pips hence also we having target 20 pips too, and we will learn how to determine best time entries to making quality trading with high accuracy hit target profit than loss
But there are trader that use hedging strategy to control these risk but this might not suitable for newbie
The main and the most important advantage of the Forex Trading is the high money involved in it.
Indeed forex being a risky business, there is huge scope for making money, due to the highly liquid nature of market. However, I agree with previous replies that most forex traders fall prey to this market and burst off with their trading account in desire to make more & more money. Proper knowledge, experience & adequate risk management along with the passion to trade is required to succeed in this market.
For whom though? If you can't trade well, that big deposit you've invested in Forex will evaporate pretty quickly.
Hedging refers to taking a position opposite to the initial open position so as to limit the risk. True that, it might not prove beneficial for the newbies as it’s a very complex process and requires proper understanding about the market swings and timing. Playing without proper knowledge can prove to be a disaster for one’s account. That’s why it might not be suitable for newbie.